A new research report released by Internet of Things (IoT) analyst company Berg Insight has revealed that the amount of active aftermarket car telematics units in the Gulf region is set to increase at a compound growth rate of as much as 20.6% every year. This means that, from the close of 2018 to the end of 2023, the number of units available is expected to rise from 58.7 million to 150 million.
The definition in the report of an aftermarket car telematics solution by Berg Insight comprises both RF-based and cellular/GNSS solutions. Over the course of the last few years, an increasing number of aftermarket telematics services have started to become available for vehicle owners in the United Arab Emirates. While it is vital for car owners to remember the essentials, such as taking out car insurance on their vehicles, there are also many who wish to add connectivity and other services to their cars. Berg Insight is predicting that the number of shipments of aftermarket telematics devices for use in customer applications will increase from the 20.3 million units recorded last year to as many as 51.0 million as of 2023, according to the report.
Berg Insight IoT analyst Martin Svegander says that aftermarket telematics solutions can be very helpful in a variety of application areas such as the tracking and recovery of stolen vehicles, Wi-Fi hotspot, usage-based insurance, convenience applications and vehicle diagnostics. The latter will allow workshops and dealers in the UAE to also improve the quality of their services for vehicle owners. Moreover, finance companies and dealers can also leverage telematics for the management of their own internal fleet in addition to managing the customer lifetime value.
Aftermarket telematics devices can enable a number of different convenience applications, including the remote control of finding the last available parking spot and the locking and unlocking of car doors. In the UAE, there is a wide array of players offering aftermarket telematics services. Leading telematics companies that sell services to customers either directly or via a third party in the UAE and the surrounding region include the likes of Octo Telematics, Ituran, Scope Technology, CalAmp (LoJack), Viasat Group, Vodafone Automotive, Spireon, Mojio, Automatic Labs (SiriusXM) and Bright Box.
The distribution of services and products via third parties is commonly used as a method of marketing for vendors of aftermarket car telematics solutions in the UAE, according to Svegander. Crucial sales channels include the likes of insurance companies, mobile network operators, online retailers and dealers. Marketing products via telemarketing and on their own websites are methods also used by a number of solutions vendors. The connected car market is of vital importance for mobile network operators, which are betting big on the success of the IoT market, with a number of mobile network operators beginning to explore the opportunity offered by aftermarket car telematics, especially since they are in the right position to be able to offer such services.
Svegander says that sales can be accelerated by mobile network operators if they target their existing customer base and leverage a network of partners in pursuit of data monetisation opportunities for their car telematics solutions base.